Assume Wal-Mart, a mass market retailer, is considering different sourcing options for their different product lines. For basic products with steady and predictable future demand, sourcing managers at Wal-Mart may consider a _______________ option, while for products requiring special knowledge and skills to produce, such as water-proof ski jackets, Wal-Mart may consider a ___________________ option.
a. direct sourcing, full package
b. full package, direct sourcing
c. CMT contract, full package
d. CMT contract, direct sourcing
Question 2
Which of the following is NOT true for CMT contracts in global sourcing?
a. CMT contracts offer the sourcer flexibility in product acquisition, without long-term commitment.
b. The sourcer may lose control over keeping design within the contractor.
c. Business objectives of CMT contractors and the sourcer may different and it may be difficult to enforce the sourcer's policies for the contractors to follow.
d. CMT contractors offer the sourcer to gain new design and marketing capabilities without significant learning costs or capital investment.
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